Aban Offshore to sell four rigs to ADES Saudi

14 Apr 2022 , 11:19 AM

The board of Aban Offshore on 23 March 2022 approved the sale of rigs Deep Driller 2, Deep Driller 4, Deep Driller 5, Deep Driller 6 and Deep Driller 8. Each rig is owned by a separate step down subsidiary of the company.

Following the boards approval, Aban Offshore on Wednesday, 13 April 2022, entered into an agreement with ADES Saudi to sell four rigs?namely, Deep Driller 2, Deep Driller 4, Deep Driller 5 and Deep Driller 6.

Aban Offshore will sell Deep Driller 2 and Deep Driller 4 rigs for Rs 198.12 crore each.

The Deep Driller 2 rig contributed about Rs 4.11 crore or 0.7% of Aban Offshores consolidated revenues in 2021-22. Deep Driller 4 contributed about Rs 10.70 crore, or 1.83% to the consolidated revenues.

The rigs Deep Driller 5 and Deep Driller 6 will be disposed for Rs 205.74 crore each.

The Deep Driller 6 rig contributed about Rs 55.63 crore or 9.52% of Aban Offshores consolidated revenues in 2021-22. Deep Driller 5 was out of contract in the last financial year.

The sale is expected to complete by 31 May 2022, the company said in a statement on Thursday, 14 April 2022.

The sale is subject to the approval of shareholders which is being sought through postal ballot process. The voting result will be disclosed on 26 April 2022.

Aban Offshore owns and operates several offshore drilling rigs, drill ships, and a floating production facility, Tahara. It is engaged in exploratory services, drilling services, production of hydrocarbons and manning and management.

On a consolidated basis, Aban Offshore reported net loss of Rs 327.21 crore in Q3 December 2021 as against net loss of Rs 281.52 crore in Q3 December 2020. Net sales declined 36.28% to Rs 136.58 crore in Q3 December 2021 over Q3 December 2020.

Shares of Aban Offshore rose 0.36% to Rs 55.10 on Wednesday. The domestic stock market is shut tody on account of Ambedkar Jayanti and Mahavir Jayanti.

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